Commercial Construction Loans
Construction loans for commercial real estate remain a major part of commercial bank lending.
Many community banks attempt to utilize versions of residential formats and policies to administer commercial construction loans; however, this generally does not adequately control the situation due to several important differences between residential and commercial projects.
This program provides an overview of the key steps involved in effectively administering commercial construction loans.
- What is construction risk and how is it mitigated?
- Differences between residential and commercial construction loans
- Various types of commercial construction situations
- Issues with construction contracts and budgets
- The interest reserve – no longer an automatic provision
- Five items that determine how you handle a specific loan
- The type of project
- The loan approval and related conditions or contingencies
- The commitment letter written to the customer
- Your bank’s policies and procedures
- The construction loan agreement
- Other key documentation: Title insurance and bonding
- Funding and draw controls
- Lien waivers and lien updates
- Disbursement methods
- Monitoring usage of budget contingency
- Line item transfers
- Completion of the project and (if applicable) stabilization
- The latest input from regulatory agencies and the proposed High Volatility CRE 150 percent risk weighting toward bank capital requirements
Consumer and commercial lenders, credit analysts and support staff, mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers and credit officers.
Richard Hamm has been training bankers for more than 24 years, specializing in all phases of commercial lending and credit, including portfolio and risk management, commercial real estate and appraisals, plus selling and negotiating skills. He owns/operates Advantage Consulting & Training after a 22-year banking career including senior positions in lending and credit.
Institute of Certified Bankers: Visit http://www.icbmembers.org/login.aspx for instructions regarding self-reporting. Estimated credits: 2 hours/session
Member price: $275.00 | Non member price $550.00
Member price: $295.00 | Non member price $560.00
Online: Visit the CBA Webinar Catalog
Mail: Click here and mail completed form with check payable to ConferenceEdge to: (Mail at least 10 days prior to event)
1516 Xavier St., Ste 500, Denver, CO 80204
Phone: Call ConferenceEdge at (877) 988-7526 (credit card payments only)
- Preferred Payment Method: Online
- Please register online or by phone when paying with a credit card
- Payment Must Accompany Registration – Invoices are Not Provided
Register online up to day of event. Earlier registration allows time to check your computer for an optimal experience.